Customer engagement is no longer just about answering customer queries, but it's about creating meaningful interactions that build trust and loyalty. With the rise of AI, businesses now have innovative conversational AI tools that help them connect with customers more personally and efficiently. These tools make every conversation smoother, whether it’s through chat, voice, or automated support.
According to a recent report of the Marketing AI Institute, thirty-six per cent of respondents say that AI is now infused into their daily workflows. There is also a significant jump in the percentage of people who said they "couldn't live without AI," from 6% in 2023 to 15% today. If you're looking for the best AI tools for customer engagement, you have strong options, each offering different strengths and weaknesses. The key to finding the best AI tools for customer engagement in your business is to align the tool with your channel needs, engagement goals, data readiness, and operational capacity.
From chatbots to voice AI agents that provide instant responses to platforms that analyse customer behaviour, AI tools are helping businesses deliver better service without losing the human touch. In this article, we'll explore some of the best AI tools for customer engagement and how they can add real value to your business.
Page Overview for Customer Engagement AI Tools
- What are AI tools for customer engagement?
- What are the different types of AI customer engagement tools?
- How to choose the best AI tool for customer engagement
- Which are the Top AI Tools For Customer Engagement?
- Why choose Squadstack AI as the best tool for customer engagement?

What are AI Tools for Customer Engagement?
AI tools for customer engagement are software solutions designed to help businesses connect with their customers more innovatively and meaningfully. They use artificial intelligence to understand customer behavior, analyze interactions, and provide personalized responses across channels like chat, email, voice, and social media. Instead of relying only on manual support, these tools help companies deliver timely and consistent experiences.
AI tools cover a wide range of functions, from chatbots to Voicebots software solutions that answer questions instantly to analytics platforms that predict customer needs. They make it easier for businesses to stay connected with customers, reduce response times, and create tailored interactions that feel more personal. In short, these tools bridge the gap between technology and customer relationships, ensuring better satisfaction and loyalty.
Key Benefits and Features of AI Tools for Customer Engagement
Providing exceptional customer experiences is essential for businesses nowadays. AI-powered customer engagement tools are transforming how businesses engage with their customers by enabling faster responses and data-driven decision-making. From intelligent voice AI agents to predictive analytics, these tools help companies deliver seamless, round-the-clock support while reducing operational costs. The following table highlights the key benefits of AI tools for customer engagement and the features that make them effective.
What are the Different Types of AI Customer Engagement Tools?
AI customer engagement tools come in various forms, each designed to meet the specific needs of businesses and their customers. These tools range from automated chatbots to advanced analytics platforms, helping brands create more meaningful and efficient interactions. Choosing the right type depends on your business goals, customer base, and the kind of engagement you want to deliver.
Types of AI Customer Engagement Tools
AI has improved customer engagement by automating repetitive tasks, providing personalized experiences, and generating actionable insights. Here are the main types of AI customer engagement tools:
AI-Powered Chatbots
AI-powered chatbots are automated conversational agents that interact with customers in real time. They can answer FAQs, guide users through processes, and even handle complex queries. These tools work across websites, messaging apps, and social media platforms to ensure customers get instant support.
AI-Powered CRM Tools
Customer Relationship Management (CRM) platforms with AI capabilities can analyze customer interactions and predict needs. They help businesses personalize communication, track engagement, and manage leads more efficiently. Examples include HubSpot AI and Salesforce Einstein.
AI Voice Assistants
Voice-enabled AI assistants interact with customers through natural language. They can answer queries, schedule appointments, and provide information without requiring typing. These tools are helpful for hands-free engagement and accessibility.
Customer Analytics Platforms
These tools collect and analyze customer data to provide actionable insights. They can identify trends, measure sentiment, and predict future behavior to help brands improve their engagement strategies.
AI Recommendation Engines
These tools use machine learning to suggest products, services, or content tailored to individual users. They enhance customer experience by making interactions personalized and relevant.
How to Choose the Best AI Tool for Customer Engagement?
With so many AI tools available, choosing the right one for your business can be challenging. The ideal solution should not only enhance engagement but also align with your customer support goals, customer base, and operational setup. Here’s a step-by-step guide to help you make the right choice:
Steps to Choose the Best AI Tool
Identify Your Business Goals
Start by defining what you want to achieve with AI customer engagement tools, such as improving response time, or reducing support costs. Clear goals will guide your selection process.
Evaluate Features and Capabilities
Compare tools based on features such as chatbots or voice AI agents, analytics, personalization, voice support, and multilingual capabilities. Ensure the tool supports your specific needs.
Check Integration Options
Ensure the AI tool can integrate with your existing systems, like CRM, email platforms, and helpdesk software. Seamless integration improves efficiency and data sharing.
Consider Ease of Use
Look for tools with intuitive interfaces that your team can easily adopt. Tools that require minimal technical expertise save time and training costs.
Review Security and Compliance
Customer engagement tools handle sensitive data. Check for robust security measures and compliance with regulations such as GDPR.
Assess Pricing and ROI
Compare pricing plans against the value the tool delivers. Consider the return on investment in improved engagement, reduced workload, and increased customer loyalty.

Which are the Top AI Tools for Customer Engagement?
With many AI tools available, businesses have many options to improve customer engagement. The right tool can boost customer satisfaction, streamline support, and drive long-term loyalty. Below are some top AI tools that stand out for their features and results.
1. SquadStack.ai
SquadStack offers AI-powered sales and support solutions designed to connect with customers at every stage of their journey. It uses advanced speech recognition and natural language processing to deliver human-like conversations.
SquadStack's Humanoid AI Voice Agent is trained on over 600 million minutes of real customer interactions. With features like lead follow-ups, appointment booking, and real-time analytics, SquadStack ensures businesses connect with customers effectively and efficiently.

2. Osno.ai
Osno is a self-serve, no-code Voice AI platform that allows businesses to build, test, and launch personalized AI voice agents within minutes. It supports multilingual conversations, delivers under 700ms latency, and offers brilliant interruption handling. Osno is ideal for appointment scheduling, lead generation, onboarding, and customer feedback collection.
3. Intercom
Intercom combines AI chatbots with live chat capabilities to create a seamless customer engagement experience. It offers personalized messaging, automated workflows, and in-depth customer insights. Intercom is widely used for customer support, lead generation, and onboarding.
4. Drift
Drift is a conversational marketing platform that uses AI to qualify leads and schedule real-time meetings. Its chatbots can answer queries, route customers to the right team, and provide tailored recommendations. Drift helps businesses engage prospects and customers with minimal delay.
Why Choose SquadStack AI as the Best Tool for Customer Engagement?
SquadStack AI is a leading customer engagement tool that combines advanced AI technology with real-world business insights. It is designed to enhance customer interactions while improving efficiency and reducing costs. With its powerful AI voice chatbot capabilities, SquadStack helps businesses connect with customers instantly, personalise communication, and optimise engagement at scale.
Different Industries & Use Cases for SquadStack AI
SquadStack’s AI tools are versatile and adaptable, serving diverse industries with tailored solutions that meet unique challenges:
Banking & Financial Services (BFSI)
AI voice chatbots streamline loan applications, credit card sales, and insurance queries. MoneyView used SquadStack to achieve 89% lead connectivity, resulting in a 40% increase in loan applications without extra cost.
Kissht reduced customer acquisition costs by 50% and boosted disbursals by 82%, proving conversational AI’s ability to drive measurable growth.
Education & EdTech
Educational institutions leverage SquadStack for admissions, demo bookings, and student engagement.
Amity University doubled its admissions conversions by improving engagement and achieving 70% connectivity. Classplus booked over 46,000 demos at an 87% connectivity rate, significantly improving sales velocity.
Healthcare
AI voice chatbots simplify appointment bookings and patient engagement. Medfin saw a 25% increase in bookings with 85% connectivity, scaling patient interaction efficiently and reliably.
E-Commerce & Logistics
SquadStack helps manage abandoned carts, returns, delivery updates, and onboarding. Delhivery reduced rider hiring costs by 70% and reduced turnaround time to 7 minutes.
Udaan gathered 36% vendor feedback through omnichannel outreach, enhancing service quality and operational efficiency.
Consumer Services & Travel
Travel companies use SquadStack for instant customer service and feedback collection. RedBus scaled customer feedback operations while reducing survey costs by 50%, maintaining 75% connectivity.

Key Highlights of SquadStack AI
- High Lead Connectivity: Achieves up to 90% connectivity across channels.
- Omnichannel Engagement: Manages over 400K daily interactions seamlessly.
- Personalized Communication: CRM-aware AI delivers tailored experiences.
- Real-Time Insights: Advanced analytics drive intelligent decision-making.
- Deep Sales Workflows: Optimized for complex enterprise needs.


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